MN Holdings wins RM25.96 million contract for solar plant at Kulim, Malaysia

MN Holdings Bhd (MNHB) has clinched a contract valued at RM25.96 million for the engineering, procurement, construction, and commissioning of a large-scale solar photovoltaic plant in Kulim, Kedah.

In a filing to the stock exchange on Thursday, MNHB disclosed that its wholly-owned subsidiary MN Power Transmission Sdn Bhd had been awarded the contract by Samaiden Sdn Bhd, a wholly-owned subsidiary of Samaiden Group Bhd.

The contract entails the establishment of new step-up station interconnection facilities for the large-scale solar substation, as well as the extension of one bay of 132kV interconnection facilities at the current 132kV NUR Power Station for NUR Renewables Sdn Bhd.

Scheduled to span 11 months, the contract commenced on April 1.

Earlier, MN Holdings had successfully obtained two substation engineering contracts totalling RM29.3 million from Tenaga Nasional Bhd (TNB) and secured an underground cable contract valued at RM13.5 million from a client offering data center services.

The latest contract win has bolstered MN Holdings’ order book to RM444.5 million, as indicated in its Thursday statement, and is anticipated to positively contribute to the group’s earnings over the next two to three financial years.

Datuk Dang Siong Diang, executive director of MN Holdings, expressed confidence in the continuous strong replenishment rate of the company’s substation engineering segment.

He commented, “Given the recent open bidding for the fifth round of the LSS program or LSS-Peralihan Tenaga SuRiA by the Ministry of Energy Transition and Water Transformation, which provides a total generation quota of 2,000MW, we foresee an increase in substation engineering projects.”

For the financial quarter ended Dec 31, 2023 (2QFY2024), MN Holdings recorded a net profit of RM3.92 million, marking a 51% increase from RM2.58 million in the previous year. Its quarterly revenue surged 82.7% year-on-year to RM74.92 million from RM41 million, driven by heightened construction activities within the substation engineering segment.

At the close of Thursday’s market, MN Holdings’ shares remained unchanged at 64 sen, translating to a market capitalization of RM284.9 million.